Market surprises just started, stay light: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"Today once again, our markets opened lower owing to weak cues from the Asian peers. Subsequently, the index consolidated for a while; but, a massive sell off in the latter half dragged the Nifty even below the 9800 mark. A modest recovery toward the fag end trimmed some portion of losses to conclude the session with a cut of 0.89% over the previous close.

Yesterday's session was a perfect example how stock specific destruction happens and market surprises by its sudden/ unexpected reversals. During the day, so many midcap counters plunged more than 5-10% with an ease. Such development can be horrifying for a short term trader and hence, we have been repeatedly advising to stay light in the market. In fact, with reference to our yesterday's article, we had a hint of this broader market selloff and hence, advised caution while selecting a stock. Now, going forward, our market is likely to remain under pressure and any intraday bounce back towards 9850 – 9900 is likely to get sold into. On the flipside, we will not be surprised to see this corrective move getting extended towards 9760 – 9700 in a day or two. Traders are advised to remain light and avoid taking undue risks as individual stocks may continue correcting in next few days."

Source : Equity Bulls

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